Step 2: Make Loss Analysis

 Where are the shreds of value? And what consumes resources without adding value?

Distinguish Value from Loss

Believe it or not; far more than 95% of the used resources in virtually any process does not add value. In this step we search for the shreds of value, hidden between the losses.

How to find VALUE?

Find and mark the activities that contain value

Activities containing value gain a green dot; even it there is just a tiny bit of real value in there. 

Estimate the value-duration

From the total activity time, determine home much is really value. Take into account the ‘could have been state’. Now it may take one hour, but what if we would do in in a different way? What is the essence we want to achieve, and how could this be done. Carefull: Do not add any complexity, people, M2 or investment! 

Fill in the Value-time line

Now that it clear that only a part of the activity time adds value, the Value Time line can be filled in.

Calculate Value versus Non-Value ratio

In the resume section at the right, fill in: the ratio between [Troughput time and Activity time] and [Throuput time and Value time].